Thu, Jan 23, 2014

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LONDON—Standard Bank PLC has been fined £7.6 million ($12.6 million) by the U.K.'s Financial Conduct Authority for failings relating to its anti-money-laundering policies and procedures.

The FCA said weaknesses in Standard Bank's anti-money-laundering systems and controls resulted in an unacceptable risk of Standard Bank being used to launder the proceeds of crime.

"Banks are in the front line in the fight against money laundering. If they accept business from high risk customers they must have effective systems, controls and practices in place to manage that risk. Standard Bank clearly failed in this respect," said Tracey McDermott, the FCA's director of enforcement and financial crime.

This is the first anti-money-laundering case the FCA, or its predecessor the Financial Services Authority has brought focused on commercial banking activity.

The FCA said Standard Bank and its senior management have cooperated with the investigation and have taken significant steps at significant cost toward remediating the issues identified. The bank also settled at an early stage of the investigation and qualified for a 30% discount on its fine.